Malaysia Market Review: The FBM KLCI (-0.3%) retreated to close at 1,607.18 pts on Friday, mirroring the weakness across regional markets as investors turned cautious amid persistent US-China trade tensions. Lower liners also closed lower, with decliners outpacing advancers 977 to 301. Across sectors, Plantation and REIT held steady, whereas Technology (-3.8%) and Construction (-2.2%) were the main laggards.
Global Markets Review: Wall Street closed broadly higher on Monday, supported by gains in technology stocks and optimism that the US government shutdown may end soon. European equities also advanced as easing concerns over the US banking sector and signs of US–China trade de-escalation lifted sentiment. Across Asia, markets ended broadly higher, led by Japan’s Nikkei 225 (+3.4%) after the Liberal Democratic Party and Japan Restoration Party agreed to form a coalition government. The KOSPI (+1.8%) rose on tech strength, while the Hang Seng (+2.4%) and Shanghai Composite (+0.6%) also gained, supported by easing trade tensions and stronger-than-expected Chinese industrial output data.
Market Outlook. We expect the FBM KLCI to trade cautiously with an upward bias today, supported by overnight gains on Wall Street. Optimism ahead of the likely meeting between US Treasury Secretary Scott Bessent and China’s Vice-Premier He Lifeng in Malaysia during the ASEAN Summit 2025 may lend additional support, although geopolitical tensions remain elevated following China’s suspension of US soybean imports and Washington’s ongoing supply-chain diversification push. Investor sentiment is likely to stay selective, favouring defensive and domestically driven sectors amid global uncertainty. In the near term, attention will turn to upcoming US economic data, including the delayed September CPI due to the government shutdown, which should offer clearer guidance on the timing of potential Fed rate cuts. The market will also focus on a slew of corporate earnings releases this week to assess whether earnings continue to justify current market valuations.
Sector focus. We continue to favour domestically driven and policy-supported sectors such as construction, renewable energy, and utilities. We also prefer power and solar players, underpinned by data centre expansion and the ongoing energy transition, which are expected to remain resilient despite global trade risks.
Technical Commentary:
The FBM KLCI failed to hold on to earlier gains and ended lower on Friday. Indicators turned negative, with the MACD Line trading below the Signal Line, while the RSI swung to end the trading session below 50. The next resistance is located at 1,660. Support is envisaged at around 1,600.
Company News (source: various)
Eco World Development Group Bhd is acquiring 22.7acres of freehold commercial land in Semenyih for RM82.2m to expand its Eco Radiance township. The purchase will be made via its 81%-owned unit, Mutiara Balau, and funded through internal funds and borrowings.
PTT Synergy Group Bhd secured three infrastructure contracts worth RM106.1m from Darby Property (Lagong) and Prolintas Expressway for works at Elmina Business Park and the Strathairlie Interchange. All projects will start in Oct 2025 and complete by early 2027.
Chin Hin Group Property Bhd is buying a land parcel in Segambut for RM31.7m to develop 585 serviced apartments with a GDV of RM239.1m. Construction is targeted to begin in 2027 and finish by 2031.
Berjaya Corp Bhd proposed a bonus issue of 33 free warrants for every 100 shares held, which could raise up to RM704.3m over five years if fully exercised, subject to shareholder approval.
AGX Group Bhd’s Vietnam subsidiary signed two logistics service agreements with Sun PhuQuoc Airways, marking its entry into Vietnam’s aviation logistics sector. The deals cover cargo forwarding, transport and customs brokerage services.
Solarvest Holdings Bhd said its 33%-owned associate, SM01, has received approval from Tenaga Nasional to operate a 29.99MWac solar facility under the Corporate Green Power Programme, selling energy virtually to Pearl Computing Malaysia.
Capital A Bhd and AirAsia X Bhd have waived the need for an exemption from the Thai regulator, paving the way for completion of their corporate exercise to consolidate all AirAsia-branded airlines under AAX.
Mestron Holdings Bhd signed an MOU with China-based Trina Solar to explore renewable energy collaboration in Malaysia, targeting the installation and distribution of 50.0MW photovoltaic modules in 2026.
Rohas Tecnic Bhd said the MACC has issued freezing and seizure orders on certain bank accounts linked to its unit HG Power Transmission over a 2015 contract. The group clarified that the probe is isolated and unrelated to its other operations.
THMY Holdings Bhd reported a 1QFY26 net profit of RM3.0m on revenue of RM14.2m, driven mainly by in-circuit test solutions, ahead of its ACE Market debut on Oct 23.
Jentayu Sustainables Bhd postponed its extraordinary general meeting to Dec 4 from Oct 22 due to board scheduling conflicts. The meeting will be held at Menara Felda, Kuala Lumpur.
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Currency | Buy Rates (RM) | Sell Rates (RM) |
---|---|---|
USD | 4.210441 | 4.239882 |
EUR | 4.923515 | 4.928567 |
CNY | 0.592481 | 0.593084 |
HKD | 0.542037 | 0.545833 |
SGD | 3.252915 | 3.275864 |